News Highlight
According to Global Energy Monitor (GEM), an organization that tracks fuel-source use worldwide, India’s coal mines use an average of only two-thirds of their capacity, with some large ones using as little as 1%.
This means that 99 of India’s coal mining projects expected to produce 427 MTPA (million tonnes per annum) are unnecessary.
It also means that opening new coal mines will not help alleviate short-term supply constraints.
Key highlights of the GEM report
- It emphasizes that capacity constraints are not cited as a reason for Coal India’s failure to meet production targets.
- Instead, competition from renewables, infrastructure bottlenecks, and land use concerns reduced the shortfall in production.
- The warning signs against massive coal mining expansion are clear, but the Indian government ignores them.
- India’s planned new coal mining capacity of 427 MTPA ranks second in the world after China’s 596 MTPA.
- To displace at least 165 villages and affect 87,630 families, approximately half of whom live in areas where tribal communities predominate.
- Daily water needs of over one million people (as the new mines – 91% planned for either high-risk or extreme water-risk zones, will consume at least 168,041 kilolitres of water per day), at a time when the country is experiencing severe water stress.
Coal energy
- Coal is India’s most essential and abundant fossil fuel. It accounts for 55% of the country’s energy needs. The country’s industrial heritage was built upon indigenous coal.
Classification of coal.
- Anthracite:
- The highest grade of coal has the highest calorific value.
- It has a carbon content of 80% to 95%.
- Bituminous coal (black coal):
- It is used in manufacturing coke and power generation.
- It has a carbon content of 60% to 80%.
- Lignite (brown coal):
- The lowest grade of coal is used for electricity generation.
- It has a carbon content of 40% to 55%.
- Peat:
- It is partially decayed plant material.
Coal in India
- India is one of the top 5 countries in terms of coal reserves.
- India is the 2nd largest coal-producing nation in the world.
Significance of the coal sector in India
- Domestic energy needs:
- Coal is the most abundant fossil fuel, accounting for 55% of the country’s energy needs.
- Source of revenue:
- State-owned Coal India, the world’s largest coal mining company, is a significant source of revenue for state coffers through dividend payments and taxes.
- The cheapest source of energy:
- Coal is by far cheaper than nuclear power, natural gas, and oil.
- More accessible to mine and transport:
- Unlike crude oil and radioactive materials, coal is mined and transported with much ease.
Challenges of the coal sector
- Import dependence on high-grade coal:
- The majority of India’s coal production is non-coking coal; coking coal has to be imported.
- Parallel economy:
- Parallel economy run by the coal mafia contributed to the black coal market, the diversion of good quality coal, the expropriation of government lands, etc.
- Coking coal has a higher carbon content and a lower ash content than non-coking coal.
- Parallel economy run by the coal mafia contributed to the black coal market, the diversion of good quality coal, the expropriation of government lands, etc.
- The source of pollution:
- Coal is one of the sources of atmospheric pollution that severely affects the atmosphere through particulate coal pollution.
- Displacement of tribal:
- The forests and agricultural lands belonging to the tribal people have been laid waste because of haphazard mining.
- Lack of transparency:
- Allocation of coal blocks faces arbitrariness and lack of transparency.
- For example, the coal scam of 2014.
Government Initiatives
- SHAKTI:
- SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India):For ther auction and allotment of coal linkages and will lead to affordable power, access to coal, and accountability in the allocation of coal.
- PM Khanij Kshetra Kalyan Yojana:
- To provide for the welfare of areas and people affected by mining-related operations.
- Coal Mines (Special Provisions) Act, 2015:
- The Coal Mines (Special Provisions) Act, 2015 enabled the allocation of coal mines through a transparent auction.
- Online Coal Clearances System:
- It is to provide single window access to its investors to submit online applications for all the permissions/clearances and approvals granted by the Ministry of Coal.
- UTTAM App:
- The UTTAM (Unlocking Transparency by Third Party Assessment of Mined Coal) app: for all citizens and coal consumers to monitor the process of Third-Party Sampling of coal across Coal India Limited(CIL) subsidiaries.
Pic Courtesy: Omicore
Content Source: The Hindu